Consider the AD/AS Macro Model

question 133

Multiple Choice

Consider the AD/AS macro model.The study of short-run cyclical fluctuations usually assumes,for simplicity,that there are no changes in

• A)the AS curve.
• B)potential GDP.
• C)either the AS curve or potential GDP.
• D)either the AD or AS curves.
• E)the intersection of the AD and AS curves.

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Definitions:

Self-Actualization

Realization or fulfilment of one's talents and potentialities, considered as a drive or need present in everyone.

Personal Fulfillment

A sense of satisfaction or achievement an individual feels upon meeting personal goals, values, or desires.

Shelter

A structure that provides protection from the environment, including homes, buildings, and temporary accommodations.

Physiological Need

A basic bodily requirement that people need to survive, such as food, water, and shelter.